Operators of energy-from-waste (EfW) plants are starting to look at the potential benefits of using ‘low carbon’ feedstock, particularly in Europe where incineration taxes are already in place, or are imminent.
At Andusia, we’ve been talking to customers in Sweden and Denmark to see how we can help them with this by supplying refuse-derived fuel (RDF) with a reduced plastic content.
In Sweden for example, EfW plant operators pay a carbon tax on the amount of fossil fuel they burn – this largely correlates to the quantity of plastic in the waste, which is typically 20-30% of the overall composition. Therefore, if we can supply a lower content of plastic (20% or less in each bale of RDF), this will help them save money.
There are significant savings to be made. Latest data from the European Union Emissions Trading System (EU ETS) indicates that carbon permit prices are averaging just over 80 euros per tonne. That equates to around 36 euros per tonne for a EfW plant using typical RDF feedstock with a relatively high fossil matter.
So, how are we working with our customers to supply low carbon RDF? First we try to source municipal waste rather than commercial/industrial waste from our suppliers as the former tends to have less plastic running through the material stream.
We also make sure we pick the right suppliers to work with, those who understand what trends are driving the industry when it comes to delivering greater efficiencies through the whole supply chain. This may involve working with them through a partnership approach to analyse their waste composition to ensure it meets customer specification.
It’s worth noting that these type of decarbonisation strategies will only grow in importance as the ETS comes into effect across more regions, including the UK in 2028. EfW plants that are connected to district heating schemes, or have plans too, will also come under increasing pressure from their offtake customers to supply lower carbon heat, or be given incentives to do so.
Therefore it makes sense to start planning now for a decarbonised RDF supply chain. This is where we can help, by applying our expert knowledge of the market to pinpoint the carbon savings to be made and working with you to realise those opportunities.